FY26 GDP growth to surpass 7% beating earlier estimates of 6.3%-6.8%: CEA
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Chief Economic Adviser (CEA) V. Anantha Nageswaran today said the GDP growth in the current financial year may supersede the earlier estimates to breach 7%. The Economic Survey had estimated the current year’s GDP growth between 6.3% - 6.8%.
“We can confidently say that the full year growth will be north of 7%. It will be over 7%, rather than being south of it. The overall picture looks of a steady growth in the third quarter too,” Nageswaran said in a briefing after the release of the Q2, FY26 GDP growth data.
“So far the economy has navigated an eventful year very well,” said Nageswaran. Saurabh Garg, secretary, ministry of statistics and programme implementation, said both services and manufacturing have contributed to the growth. “GDP estimate is outside of the most optimistic estimate. Manufacturing growth continues from the first quarter despite global headwinds. Industries such as steel, cement, garments, automobiles, tyres etc have shown significant growth,” Garg said.
“Private final consumption expenditure, which has a share of about 62% in overall GDP, recorded a growth of 7.9%,” Garg added.
The Indian economy registered GDP growth of 8.2% in the second quarter of the current financial year against 5.6% in the same quarter of the previous financial year led by manufacturing growth of 9.1% and construction sector growth of 7.2%.
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“Real GDP has been estimated to grow by 8.2% in Q2 of FY 2025-26 against the growth rate of 5.6% during Q2 of FY 2024-25. Nominal GDP has witnessed a growth rate of 8.7% in Q2 of FY 2025-26,” said a release from the ministry of statistics.
“Real GDP or GDP at Constant Prices in Q2 of FY 2025-26 is estimated at ₹48.63 lakh crore, against ₹44.94 lakh crore in Q2 of FY 2024-25, registering a growth rate of 8.2%. Nominal GDP or GDP at Current Prices in Q2 of FY 2025-26 is estimated at ₹85.25 lakh crore, against ₹78.40 lakh crore in Q2 of FY 2024-25, showing a growth rate of 8.7%,” the release added.
Consumption in the economy seems to be picking up evident from the 7.9% growth in real private final consumption expenditure (PFCE) has during Q2 of FY 2025-26 as compared to the 6.4% growth rate in the corresponding period of previous financial year. In the first half of the current financial year, real GDP has registered 8.0% growth rate, as compared with 6.1% in H1 of FY 2024-25.